Consultancy and loadboard provider Truckstop.com on Sept. 25 unveiled a forecasting tool for the non-contract, or spot, truckload market that it said will, for the first time, project the direction of spot rates in specific markets and on a lane-by-lane basis.
Truckstop will build projections by leveraging 10 years of prior rate data, the company said. The service will provide customers with a window on how rates are expected to fluctuate in the days, weeks, and months ahead, Truckstop said. The service was developed in conjunction with FTR, another transport consultancy.
The tool, called "Rate Forecasting," uses "big data" to analyze 10 years of market trends from across the Truckstop.com marketplace as well as from FTR's proprietary economic modeling algorithm that measures 13 million data points each month. The result is a forecast showing the different trends on each of 160,000 state-by-state lanes and 6 million origin/destination pairs, according to the two companies.
"Rate Forecasting balances seasonal, geographic, random, economic, regulatory, and permanent trends on each lane with deep statistical modeling better than a human can on the fly," said Noël Perry, chief economist for both organizations.
"Brokers, carriers, and shippers can benefit from this information through improved budgeting, benchmarking, and business planning, added Brené Hutto, Truckstop's chief relationship officer.